Not really willing to refinance into a longer term mortgage. Doesn't make sense to me to pay more long term interest for smaller monthly costs since its not a necessity right now.

For the many who pointed out maintenance and other one time costs, I've already got savings for those. It's not included in this budget because if I hit the $3500/month, we should be able to save $500/month for all that other stuff that comes once a year (auto registration, car maintenance, home maintenance, etc.).

I'm also going to read some of the Fool articles on insurance and see if I have the cuts to cut some coverage there (if appropriate). I'm pretty sure we are over insured, but it's that "sleep well at night" factor, you know?

It's good to know that only the one category seems really out of whack. Based on the feedback I'm definitely going to tackle the Food budget and try to make some cuts there.